2. Energy Use, Economy, and Carbon Emissions

3. Energy Statistics

4. Oil and Gas

5. Electricity

6. Trade and Cooperation

7. Environment and Renewable Energy in Africa

Appendix

4. Oil and Gas

 Oil in Africa Overview ...
Natural Gas in Africa Overview ....
Oil and Gas Privatization in Africa ...
Oil and Gas Integration Within Africa-Recent Developments

Oil in Africa Overview ...

Oil Production and Consumption Graph

Africa produced 7.8 million barrels per day (bbl/d) of oil in 1998. The top oil producers in Africa in 1998 were (in descending order of magnitude): Nigeria, Libya, Algeria, Egypt, and Angola.  All regions of Africa are net crude oil exporters, with the exception of East Africa. Total African oil consumption in 1998 was 2.5 million bbl/d. The top oil consumers in Africa in 1998 were (in descending order of magnitude): Egypt, South Africa, Nigeria, Algeria and Libya.  South Africa is the largest net crude oil importer in Africa, followed by Morocco. Smaller net crude oil importers include Cote d’Ivoire, Ghana, Kenya, and Sudan. Top net crude oil exporting countries in Africa include: Nigeria, Libya, Algeria, Angola, Egypt, Gabon,  Congo, and  Cameroon.

Most African oil producers, like other world oil producers, saw oil revenues fall sharply during 1998 and early 1999  due to a collapse in world oil prices.  This had serious implications for budgets, economies, and oil expansion plans throughout the region.  Oil prices began increasing in March 1999, and as of October 1999, had recovered to January 1997 levels.

CENTRAL AFRICA
Despite political turmoil in Central Africa (in particular, civil conflicts in Congo and the Democratic Republic of Congo), the region has seen crude oil production rise from 650,000 bbl/d in 1993 to 875,000 bbl/d in 1998.  Largest increases in those years were in Equatorial Guinea (+97,000 bbl/d), Congo (+84,000 bbl/d) and Gabon (+48,000 bbl/d). Meanwhile, Chad hopes to begin production from its Doba Basin fields, with possible peak production of 250,000 bbl/d, in the next few years, while Congo expects the 400-million barrel Moho field to begin production by the end of 2001.

Successful exploration and production activities throughout Central Africa have encouraged several countries (Cameroon, Equatorial Guinea and Gabon) to offer new licensing rounds for oil exploration blocks.

Mobil will evaluate 22 deepwater blocks covering 12 million acres under an agreement signed with the Sao Tome and Principe National Petroleum Company (STPETRO). Following the 18-month technical evaluation, Mobil will have the exclusive option to negotiate with STPETRO for a production sharing contract on the acreage.

A consortium, composed of U.S.-based firms Trinity Gas, Carlton Energy and Nigeria’s Oriental Energy Resources, has signed an exploration agreement for Chad’s 108-million acre block H. The group plans to spend $59 million on exploration activities on the block, which is roughly the size of Kansas and Oklahoma combined.

Chad plans to construct a pipeline from fields located in the Sedigi basin to a new refinery located in the capital of N'Djamena.  The refinery, with planned capacity of 3,000 - 5,000 bbl/d, would produce fuel for transportation and power generation.

EAST AFRICA
Although  there are plans to develop oil resources for export, primarily in Sudan, East Africa has the smallest proven reserves and production (0.3% and 0.1% respectively of  Africa’s total) on the continent. As of 1998, Kenya was the region’s largest oil consumer (overall, Africa’s 9th largest) and net oil importer.  East Africa’s refining capacity (5 plants) of 155,000 bbl/d represents 5.1% of Africa’s total refining capacity.  In comparison, East Africa’s refining capacity is approximately one-tenth of Mexico’s.

The Tanzania Petroleum Development Corporation (TPDC) has signed several agreements with foreign companies for the rights to explore for hydrocarbons on its territory. Canada’s Heritage Oil is currently prospecting in Uganda’s Western Rift Valley where surface oil seeps have occurred.

The Greater Nile Petroleum Operating Company (GNPOC) has begun production of 120,000 bbl/d from its fields in southern Sudan, and exported its first cargo in September 1999. The oil is transported through a 1,500-kilometer (930-mile) pipeline from the fields to a marine export terminal located near Port Sudan on the Red Sea. GNPOC is a consortium of Sudanese, Canadian, Chinese and Malaysian firms.

The European Investment Bank has awarded a loan to the Kenya Pipeline Company to refurbish the petroleum product pipeline that runs from the port of Mombasa to the cities of Nairobi and Eldoret. TPDC is also planning to construct a product pipeline from the port of Dar es Salaam to the Mwanza region in northwest Tanzania.

NORTH AFRICA
North Africa is the continent’s most developed oil region. The majority (56%) of Africa’s proven oil reserves and refining capacity (54%), as well as 49% of the continent’s production (in 1998),  are located in North Africa. Three countries ¾Algeria, Libya (both members of the Organization of Petroleum Exporting Countries or OPEC) and Egypt¾dominate the region’s oil sector, but Morocco and Tunisia are actively pursuing the expansion of their upstream oil sectors.

Algeria’s state-owned Sonatrach and its foreign partners have plans to increase Algeria's crude oil production, although Algeria is bound by OPEC quota agreements. Algeria's oil sector, unlike that of most OPEC producers, has been open to foreign investors for more than a decade. At the start of 1999, there were 25 foreign firms from 19 countries operating in Algeria.

Egypt, Africa’s largest oil refiner (in terms of capacity), will have an additional 100,000 bbl/d of refining capacity when the Egyptian-Israeli joint venture MIDOR (Middle East Oil Refinery Ltd.) refinery begins operation in 2001. In August 1999, Egypt invited bids for the construction of a liquefied petroleum gas (LPG) plant near Port Said on a build operate transfer (BOT) basis.

In addition to its role as an oil producer/exporter, Egypt has strategic importance because of its operation of the Suez Canal and Sumed (Suez-Mediterranean) Pipeline, two routes for export of Persian Gulf oil.

Morocco is North Africa’s sole net oil importer (145,000 bbl/d in 1998). Shell and the U.K.-based Enterprise Oil are currently negotiating for exploration/production licenses for blocks offshore Morocco. The country’s hydrocarbon code has been amended to reduce Morocco’s share in oil discoveries from a maximum of 50% to 25%.

SOUTHERN AFRICA
Oil production in Southern Africa is dominated by Angola, while the region’s refineries are concentrated in South Africa.  Additional refining capacity in Southern Africa is located in Angola, Madagascar and Zambia.  South Africa, the continent’s second largest oil consumer, is Africa’s largest net oil importer. In 1998, South Africa produced about 185,000 bbl/d of synthetic oil from coal and natural gas.

Three member countries of the Southern African Development Community (SADC)¾Angola, Mozambique and Tanzania¾have applied for a $19-million loan from the African Development Bank (ADB) to fund coordinated petroleum exploration projects. SADC members plan to enhance a regional geological and geophysical database. The SADC energy sector currently operates 42 projects totaling over $844 million.

Angola’s national oil company, Sociedade Nacional de Combustiveis de Angola (Sonangol), plans for the country’s crude oil production (735,000 bbl/d in 1998) to reach 1 million bbl/d in 2000, and to nearly double to 1.4 million bbl/d by 2003. Angola’s crude oil production has more than quadrupled since 1980. The majority of Angola’s current production comes from fields located offshore the enclave of Cabinda, but several significant oil discoveries have been made in deeper waters offshore Cabinda and Angola proper. The discoveries, which are estimated to contain several billion barrels of oil reserves, not only have been the impetus for exploration offshore Angola, but  also have generated interest in areas offshore Central and West Africa.

Sonangol has announced plans for the construction of Angola’s second refinery. The facility, with a capacity of 150,000-200,000 bbl/d would be built near the central coastal city of Benguela.

Mozambique has signed several agreements for the exploration of hydrocarbons. In early 1998, BP-Amoco (then BP) signed a production sharing agreement (PSA) with Mozambique. Under the PSA terms, BP-Amoco has exclusive rights to explore 25,000 square miles (40,000 square kilometers) of acreage in waters offshore the Zambezi Delta.  An international consortium of oil firms, including South Africa’s Sasol, signed three exploration agreements with Mozambique’s state oil firm, Empresa Nacional Hydrocarbonetos (ENH), covering three exploration blocks: Temane, Sofala and M10.

Plans for a new 100,000-bbl/d refinery, to be located in the central Mozambican city of Beira, have been announced after preliminary studies on the project were conducted.  Mozambique and the state-oil firms of Iran and Malaysia are seen as the potential investors in the $1.2 billion project.  Additional investment may come from the governments of Malawi, Zambia and Zimbabwe, all of which have expressed interest in the project.

Zimbabwe is considering the construction of a second petroleum products pipeline from Beira, Mozambique to the National Oil Company of Zimbabwe (Noczim) depot in Msasa (outside of the capital of Harare).

WEST AFRICA
West Africa is the continent’s second largest oil producing region, and the third largest in terms of oil consumption. Nigeria, which contains 99.4% of West Africa’s proven oil reserves, is Africa’s largest oil producer.  Excluding Nigeria, West Africa is a net oil importer. The largest net importers, in 1998, were Cote d’Ivoire, Ghana, Mauritania, and Senegal.

Benin, which produces a small amount of crude oil from its offshore Seme field, hopes to expand offshore and onshore exploration.  Neighboring Togo recently announced the opening of all offshore areas for oil and gas exploration. Togo’s offshore area is divided into 15 blocks totaling 2,600 sq. miles (4,100 sq. kilometers).

Mali has awarded exploration rights for three blocks to the U.S.-based Stratic Energy Corporation. The three blocks, which cover approximately 195,000 sq. miles (503,000 sq. kilometers), have similar geologic formations to known oil-containing areas located in Algeria, Chad and Sudan. The Gambia, Ghana, Mauritania and Senegal also have recently granted offshore exploration rights.

Nigeria plans to increase crude oil production by approximately 50% over the next four years, from 2 million bbl/d currently, by providing better funding to develop new oil and gas fields.  The Nigerian government is investigating alternative-funding schemes to help meet these production goals.  Shell's EA oil field is the first project to utilize a new funding scheme.  The field’s private partners will finance the $400 million-EA field development. The Nigerian National Petroleum Corporation’s (NNPC) share of costs will be carried by Shell, and will be repaid as EA starts production.

The NNPC has awarded several contracts for the repair and maintenance of Nigeria’s oil refineries.  Refinery problems have led to fuel shortages and forced the NNPC to import petroleum products.  An $84-million expansion, which would increase refining capacity from 59,000 bbl/d to 88,000 bbl/d, was announced in 1998 for Cote d’Ivoire’s Societe Ivoirienne Raffinage (SIR) refinery. Ghana’s refining capacity was expanded from 25,000 bbl/d to the current 45,000 bbl/d in 1997, and additional refinery upgrades are scheduled to be completed in 2002.

Natural Gas in Africa Overview ...        

Total African natural gas production in 1997 was 3.6 trillion cubic feet (Tcf). Major natural gas producers in Africa in 1997 were: Algeria (accounting for approximately 69% of total gas production on the continent) and Egypt (13%).  Libya, Nigeria, Tunisia and South Africa also produced significant amounts of natural gas in 1997.

Algeria (with 36%) and Nigeria (34%) contain the majority of Africa’s  proven gas reserves.

Total African natural gas consumption in 1997 was 1.8 Tcf. Natural gas consumption in Africa is expected to grow significantly as domestic and transnational gas-to-power projects are developed. Several of Africa’s major oil producers, including Nigeria, Gabon and Angola, are developing projects to utilize associated natural gas, which currently is flared or re-injected for the most part. 

Natural Gas Production and Consumption Graph

CENTRAL AFRICA
Central Africa’s proven gas reserves (about 3% of the continent’s total), are concentrated in Cameroon, Congo, Equatorial Guinea and Gabon. Central Africa accounted for only 0.1% of Africa’s natural gas production in 1997.

Congo is developing studies on the potential of utilizing natural gas for power generation and mining projects.

A project to utilize gas produced  from the Equatorial Guinea’s Alba field is currently underway. Plans call for 100 million cubic feet per day (Mmcf/d) of natural gas to be processed into methanol at a plant under construction on the island of Bioko.

EAST AFRICA
East Africa’s proven natural gas reserves (approximately 2% of total African reserves) are primarily found in Sudan (3 trillion cubic feet - Tcf), Rwanda (2 Tcf), Tanzania (980 billion cubic feet - Bcf) and Ethiopia (880 Bcf).

Feasibility studies are being conducted on the development of methane deposits, which lie in the deep waters of Lake Kivu. The gas, with reserves estimated between 1.9-2.5 Tcf, has been used sparingly in Rwanda. Joint development of the gas by Rwanda and the Democratic Republic of Congo, which share Lake Kivu, is being considered.

Tanzania plans to develop two offshore gas fields to provide fuel for power generation. Gas from the Songo-Songo field will be transported to Dar es Salaam by a 160-mile (250-kilometer) pipeline, where it will be used to generate electricity.  The pipeline could be extended to the Kenyan port city of Mombasa to supply gas for industrial usage and power generation.  The Mnazi Bay field will supply gas to the southern Tanzanian town of Mtwara.  The fuel will be used at a 15-MW generating plant.  Plans call for the generating facility’s capacity to expand to 50 MW by 2003.

NORTH AFRICA
North Africa contains the continent’s largest natural gas sector. The region holds the majority of proven reserves (58%), and accounts for nearly all of Africa’s natural gas production (91%) and consumption (83%).

Algeria, the world’s second largest exporter of liquefied natural gas (LNG) in 1998, exported 22% of the world’s total LNG to Western Europe and the United States. Gas is also exported from Algeria via the Trans-Mediterranean (Transmed) pipeline (847.6 Bcf per year - Bcf/y) and the Maghreb-Europe Gas (MEG) pipeline (300.2 Bcf/y).

Egypt's total proven gas reserves, currently  31.5 Tcf, have more than doubled during the past 6 years (15 Tcf of proven reserves in 1993) and production has increased 20% from 1993 to 1997. The rapid increase in Egypt's natural gas reserves and production has encouraged plans for gas exports, either by pipeline or LNG tanker, but Egypt currently consumes all the gas it produces. Production from Egypt’s largest gas field, Scarab-Saffron, is slated to begin in January 2003 at a rate of 530 Mmcf/d.

Compressed Natural Gas (CNG) is being used as fuel for taxis in the Cairo metropolitan area. Approximately 15,000 - 20,000 taxis have been converted to run on CNG, and the number has been growing about 30% annually  since the project’s inception in 1996. The 17 CNG fueling stations currently in operation are owned by two joint ventures between Egypt’s state oil company, the Egyptian General Petroleum Corporation, and the foreign firms of BP Amoco and ENI/Agip.

Nigerian LNG {Table}

SOUTHERN AFRICA
Southern Africa contains approximately 2% of Africa’s natural gas reserves and accounted for 2% of gas production in 1997. Namibia (3 Tcf), Mozambique (2 Tcf), Angola (1.6 Tcf) and South Africa (780 Bcf) contain the region’s significant reserves, but only Angola and South Africa currently produce gas.

U.S.-based Texaco has signed an agreement with Angola’s Sonangol to plan the development of an LNG project. The project would utilize natural gas reserves located offshore Angola south of the Congo River.  Gas supplied to the LNG project will be both associated gas (from current and future oil production) and non-associated gas that has been discovered but not developed.

Angola Is also studying other plans for associated gas development.  Currently, approximately 85% of Angola’s gas is flared.  Possible uses for the gas include power generation and a gas-to-liquid fuels project.

Enron is negotiating with the government of Mozambique to develop the Pande gas project, including exploration and development of the Pande field in southern Mozambique, and construction of a 373-mile (610-kilometer) pipeline to transport natural gas from Pande to the planned Maputo Iron & Steel Project.

WEST AFRICA
In 1997, West Africa was the continent’s second largest natural gas producer and consumer. Nigeria’s estimated 124 Tcf of proven natural gas reserves are the 9th largest in the world.

Cote d'Ivoire, with proven natural gas reserves of 1 Tcf, is poised to become a regional gas exporter.  Cote d'Ivoire plans to supply gas from its offshore Kudu, Ibex and Eland fields to Ghana’s Takoradi power facility.

U.S.-firm Apache and its partners, Electricite de France, Petroci and Saur - Bouygues, announced the signing of a ten-year, take-or-pay gas contract with the Cote d’Ivoire government in April 1997. The gas, which is planned to be used in power generation, will be supplied from Cote d’Ivoire’s offshore Foxtrot field. Foxtrot has estimated reserves of nearly 600 Bcf.

The Ghana National Petroleum Corporation (GNPC) is developing the offshore Tano fields in a gas-to-power project.  GNPC will drill a series of wells and pipe the gas to two sets of power plant barges. Tano gas reserves are estimated to be sufficient to fuel a 100-MW to 140-MW power plant for at least 15 years.

Chevron and South Africa’s Sasol have signed an agreement for the construction of a 20,000 to 30,000-bbl/d gas-to-liquids (GTL) plant in Nigeria. The GTL plant, which is scheduled to be operational by 2003, will convert natural gas into synthetic crude oil, and the crude will be further processed into petroleum products. Feedstock natural gas for the GTL plant will be provided by Chevron’s Escravos Gas Project, Nigeria’s first major associated gas project.

Senegal's natural gas reserves, an estimated 106 Bcf,  are located primarily onshore. Gas currently produced on Senegal’s Diam Niadio East concession is supplied to Société Nationale d’Electricite (Senelec), the electric utility operating in Senegal.

Ocean Energy (United States) has constructed a LPG extraction plant near Abidjan, Cote d’Ivoire. The facility will produce 20,000 tons of LPG (butane) annually, from 75 Mmcf/d of natural gas feedstock .

A Snapshot of Oil and Gas in Africa ...{Table} 

Oil and Gas Privatization in Africa ... 

CENTRAL AFRICA
Equatorial Guinea’s assets in the local oil distribution firm, GeTotal, were purchased by TotalFina, its former partner in the company.

The final privatization of Congo’s Hydro-Congo is expected to be completed by the end of 1999. The company’s downstream operations, including refining and distribution, will be assumed by the buyers.  Elf and Shell were negotiating with the government on Hydro-Congo’s privatization prior to civil war.

EAST AFRICA
The government of Rwanda has sold assets from the oil marketing/distribution firm, PetroRwanda, to Shell. Shell announced plans to invest in the rehabilitation of PetroRwanda’s distribution network.

NORTH AFRICA
The privatization of Morocco’s Samir oil refinery began in 1996 when 30% of the company was listed on the Moroccan stock exchange. Saudi Arabia’s Corral Petroleum (Corral) was awarded a tender for Samir and acquired a 61% interest in 1997. Corral  acquired an additional 6% of the refinery in 1999.  Corral also has acquired a 71% interest in Morocco’s SCP refinery.

SOUTHERN AFRICA
Six companies have qualified for the bidding on the privatization of Johannesburg’s Metro Gas assets and gas distribution network. The companies, which include Enron and Cinergy, were to have submitted final bids by November 2, 1999. When completed by the end of 1999, the sale will be South Africa’s first gas utility divestment.

Malawi’s Petroleum Control Commission (PCC) governs the import, distribution and pricing of petroleum. PCC’s monopoly on the importation of petroleum products was set to end in March 1999.  As a result of preexisting contractual arrangements for the purchase of petroleum products, the private oil companies in Malawi chose to postpone contracting for their own supplies. A consortium of private petroleum companies operating in Malawi is to negotiate a supply contract for the calendar year 2000.

WEST AFRICA
An $84 million expansion of Cote d’Ivoire’s 59,000-bbl/d Societe Ivoirienne Raffinage (SIR) refinery was announced in 1998, and the government is looking for a "strategic partner" willing to invest in the expansion. Cote d’Ivoire's 47% interest in SIR has been scheduled for privatization.

Gestoci, a fuel storage company that supplies petroleum products to central and northern Cote d'Ivoire, is set to be restructured. Currently jointly-owned by the government and the petroleum marketers (ENI/Agip, Elf, Mobil, Texaco, TotalFina and Shell) in the country, Gestoci will have its government stake reduced to 34%.

Benin’s state-owned oil firm Sonacop (Societe Nationale de Commercialization des Produits Petroliers) has been privatized. The local firm, Continetale des Petrole et D’Invesstissement (CPI), was awarded the tender for Sonacop. The terms of the privatization include  55% of the capital to be sold to the “strategic” investor  (CPI), 10% reserved for sale to employees, and the remaining shares retained by the government.

Select Transnational Gas/Oil Projects within Africa (Operational)East and Southern Africa{Table}

Select Transnational Gas/Oil Projects within Africa (Under Construction/Planned) Central Africa{Table}

Select Transnational Gas/Oil Projects within Africa (Under Construction/Planned) Central Africa (continued){Table}

Select Transnational Gas/Oil Projects within Africa (Under Construction/Planned) West Africa (continued){Table} 

Oil and Gas Integration Within Africa–Recent Developments

Potential increases in regional trade, coupled with growing energy demands and the necessity for regional oil producers to utilize natural gas resources have resulted in the development/planning of cross-border pipelines in Africa.  Additional oil pipelines (both crude and product) are planned to supply interior African countries with needed energy supplies. The discovery of offshore hydrocarbon reserves, many of which cross maritime borders, has led to possible joint efforts in the exploitation of these resources. As a result, the energy infrastructure of Africa should become increasingly interconnected over the coming decades. 

CENTRAL AFRICA

• On March 6, 1999 Equatorial Guinea’s President Obiang Nguema Mbasogo signed a decree unilaterally adopting an equidistant median line to define territorial boundaries as stipulated under the UN Convention on the Law of the Sea. Cameroon, Sao Tome & Principe and Nigeria subsequently accepted the decision as an improvement over oft-disputed traditional boundaries.

EAST AFRICA

• The governments of Kenya and Uganda announced, in May 1999, plans for a petroleum products pipeline from Eldoret in western Kenya to Kampala, Uganda. The pipeline, with a capacity of 16,500 bbl/d, would supply petroleum directly to Uganda and indirectly (transported from the pipeline terminus by road, rail and barge) to Rwanda, Burundi, northwestern Tanzania  and eastern portions of the Democratic Republic of Congo.  Construction of the  200-mile (320-kilometer), $80-million pipeline is projected to take four years.

• Uganda is also investing in the proposed $400-million product pipeline running from Dar es Salaam to Mwanza in Tanzania. The 690-mile (1,104-kilometer) pipeline will also indirectly supply Uganda, Rwanda, Burundi and the Democratic Republic of Congo. Construction of the pipeline is expected to commence before the end of 1999.

NORTH AFRICA

• Egypt and Libya have announced plans to build a 375-mile (600-kilometer), 150,000-bbl/d oil pipeline to transport Libyan crude from Tobruk to Alexandria for refining and sale in Egypt. The pipeline is expected to cost $300 million, and should take 3-4 years to complete.

• In November 1998, BP-Amoco signed agreements with Egypt and Jordan to build a natural gas pipeline across the Sinai and under the Gulf of Aqaba to Amman, Jordan and possibly beyond. Under this agreement, gas from Egypt’s Nile Delta was expected to begin flowing to Jordan in 2001.

• The northern part of the Gulf of Gabes, also known as the November Seventh concession, lies on the Libyan-Tunisian border. The area (which contains an estimated 3.7 billion barrels of oil and nearly 12 Tcf of natural gas) is set to be exploited by the Libyan-Tunisian Joint Oil Company (JOC), a 50-50 venture of Libya's NOC and Tunisia's state oil company ETAP. On February 1, 1997, JOC awarded the entire block to a consortium consisting of Saudi Arabia's Nimr Petroleum (55%) and Malaysia's Petronas (45%).

• Tunisia has committed to purchase 14 Bcf/y of Algerian gas (via the Transmed pipeline), until 2020, under a deal signed in March 1997. Tunisia consumes approximately another 25 Bcf/y of gas from Algeria, which is bought on spot basis and received in lieu of transit fees from the Transmed pipeline .

• Zimbabwe’s Noczim is planning to construct an additional oil-product pipeline from Mozambique’s port of Beira to its depot in Msasa. The 500-mile (800-kilometer) pipeline would help to meet Zimbabwe’s growing oil demand. Currently 80% of the oil consumed in Zimbabwe is transported through the existing pipeline.

• Natural gas from Namibia’s offshore Kudu field is expected to be a fuel source for power and industrial projects in Namibia and South Africa. A  750-MW power plant will be constructed at Oranjemund, Namibia which would supply power to Namibia and South Africa. A 440-mile (700-kilometer) pipeline would deliver gas to power a new 1,000-MW power facility in Cape Town, South Africa and provide fuel for industrial projects in Saldanha (steel mill currently under construction) and Cape Town.

• An agreement to supply natural gas from the Temane Gas field in southern Mozambique to South Africa’s Gauteng region is expected to be completed soon. The gas would be transported to South Africa by a 580-mile (925-kilometer) pipeline. A consortium composed of  U.S.-based Arco, South Africa’s Sasol and Dubai’s Zarara Petroleum are developing the Temane field and the pipeline project.  Plans call for natural gas from Mozambique’s Pande field to be utilized for new and existing industries in Mozambique’s capital of Maputo. Natural gas from the Temane consortium’s other Mozambican exploration areas (Sofala and M10, both of which are located offshore) could be used in Mozambique’s central industrial area of Beira.

WEST AFRICA

• Cote d’Ivoire and Ghana have signed an agreement for a feasibility study on the construction of a natural gas pipeline to supply Ivorian gas to Ghana for power generation. Negotiations between Cote d'Ivoire and Ghana to adopt a memorandum of understanding (MOU) on the sale of gas began in the summer of 1997. Cote d'Ivoire plans to supply gas from the Kudu, Ibex and Eland fields to Ghana. Ghanaian mining concern Ashanti Goldfields also has expressed interest in purchasing gas from Cote d'Ivoire.

• In 1995 Senegal and Guinea-Bissau established the Management and Cooperation Agency (MCA) for the joint-development of maritime resources located in their border area. The countries will split any proceeds earned from oil in the area, with Senegal receiving 85% of the profits and Guinea-Bissau 15%.  In May 1998, Benton Oil and Gas of the United States signed an oil exploration/production agreement with the MCA to drill on the Dome Flore field in the waters offshore the coastal boundary.